Germany's businesses fear a 'Hard Brexit' would damage both sides

LONDON — An industry spokesman for Germany's small and
medium-sized businesses (SMEs) believes that a "hard" Brexit
which pulls Britain out of the single market "would harm both
sides."

BVMW President Mario Ohoven, whose trade group represents over
250,000 German SMEs, told the BBC
that negotiations should be "guided by economic sense and not by
political ideologues."

The remarks strike a different tone to other German politicians,
who have insisted that Britain cannot have full single market
access unless it retains the EU's freedom of movement policy —
something Prime Minister Theresa May has ruled out.

Ohoven said that keeping Britain in the single market was vital
to maintain the close trade links between the two countries.

"Germany exported goods worth €89 billion (£76 billion) to the UK
alone in 2015 — almost half of it was exported by 150,000 German
SMEs," he said.

"In the end, a soft Brexit should be reached. It is important
that the UK stays in the single market, or that the UK joins an
agreement similar to the the EFTA (European Free Trade
Association), similar to Norway or Iceland.

He said the "worst result" would be "if the EU and the UK did not
reach an agreement in time."

Ministers have admitted the possibility that the government will
fail to secure a full UK-EU trade deal within the two-year time
frame permitted by EU law, but the prime minister is confident
such a scenario can be avoided.